Pizza Hut is preparing to close hundreds of locations across the United States as its parent company takes a hard look at the future of the once-dominant pizza brand. The move comes amid declining sales and growing competition in the crowded fast-food pizza market. Yum! Brands confirmed the closures during its fourth-quarter 2025 earnings call, describing them as part of a broader effort to address long-standing performance issues within the Pizza Hut business, as per a report by The Independent.
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Yum! Brands said the closures will focus on underperforming Pizza Hut locations and are expected to take place during the first half of 2026. The 250 restaurants represent about 3 percent of Pizza Hut’s total US footprint.
While the company did not identify which locations will shut down, CFO Ranjith Roy said the decision was aimed at improving overall performance. Yum! Brands declined to comment further as it continues its strategic review.
In November, Yum! CEO Chris Turner revealed that the company had launched a “formal review of strategic options” for Pizza Hut, including the possibility of selling the chain. During Wednesday’s earnings call, Yum! said it could not discuss details of the review, which is expected to conclude later this year, as per a report by The Independent.
The review reflects broader concerns about Pizza Hut’s ability to compete, especially as other Yum! brands, such as Taco Bell, continue to attract customers through frequent menu innovation.
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Pizza Hut’s struggles were reflected in its most recent sales figures. Same-store sales at US locations fell 3 percent in the fourth quarter and dropped 5 percent for the full year, according to Yum! Brands’ earnings release.
Despite operating nearly 20,000 restaurants worldwide across more than 100 countries, Pizza Hut relies heavily on the US market, which accounts for nearly half of its sales. The chain currently has about 6,500 US locations, as per a report by The Independent.
The company has faced turbulence before. In 2020, one of Pizza Hut’s largest franchisees filed for bankruptcy and closed 300 stores, signaling deeper structural challenges for the brand, as per a report by The Independent.
Founded in 1969, Pizza Hut quickly rose to prominence and became the world’s top pizza chain by sales in 1971. PepsiCo acquired the brand in 1977 before spinning off its restaurant division as Yum! Brands in 1997.
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When will the Pizza Hut closures happen?
The 250 underperforming locations are expected to close during the first half of 2026.
Is Yum! Brands selling Pizza Hut?
The company is reviewing strategic options, including a possible sale, but no decision has been announced.
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Why is Pizza Hut closing 250 stores?
Yum! Brands said the closures will focus on underperforming Pizza Hut locations and are expected to take place during the first half of 2026. The 250 restaurants represent about 3 percent of Pizza Hut’s total US footprint.
While the company did not identify which locations will shut down, CFO Ranjith Roy said the decision was aimed at improving overall performance. Yum! Brands declined to comment further as it continues its strategic review.
What is Yum! Brands considering for Pizza Hut?
In November, Yum! CEO Chris Turner revealed that the company had launched a “formal review of strategic options” for Pizza Hut, including the possibility of selling the chain. During Wednesday’s earnings call, Yum! said it could not discuss details of the review, which is expected to conclude later this year, as per a report by The Independent.
The review reflects broader concerns about Pizza Hut’s ability to compete, especially as other Yum! brands, such as Taco Bell, continue to attract customers through frequent menu innovation.
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How has Pizza Hut been performing financially?
Pizza Hut’s struggles were reflected in its most recent sales figures. Same-store sales at US locations fell 3 percent in the fourth quarter and dropped 5 percent for the full year, according to Yum! Brands’ earnings release.
Despite operating nearly 20,000 restaurants worldwide across more than 100 countries, Pizza Hut relies heavily on the US market, which accounts for nearly half of its sales. The chain currently has about 6,500 US locations, as per a report by The Independent.
The company has faced turbulence before. In 2020, one of Pizza Hut’s largest franchisees filed for bankruptcy and closed 300 stores, signaling deeper structural challenges for the brand, as per a report by The Independent.
A legacy brand facing modern challenges
Founded in 1969, Pizza Hut quickly rose to prominence and became the world’s top pizza chain by sales in 1971. PepsiCo acquired the brand in 1977 before spinning off its restaurant division as Yum! Brands in 1997.
ALSO READ:Quote of the Day by Kendrick Lamar: 'I learned, when I look in the mirror…'—Top quotes by the most awarded rapper in Grammy history
FAQs
When will the Pizza Hut closures happen?
The 250 underperforming locations are expected to close during the first half of 2026.
Is Yum! Brands selling Pizza Hut?
The company is reviewing strategic options, including a possible sale, but no decision has been announced.
